Vroom, Inc. (VRM) AI Stock Analysis

• Market Cap: $140.75M
• Dividend Yield: N/A
• Average Volume (3M): 12.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: -96.51%
• EPS Growth: 77.24%
• Country: US
• Employees: 704
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Auto - Dealerships
• EPS (TTM): 7.46
• Shares Outstanding: 5,163,274
• 10 Day Avg. Volume: 6,454
• 30 Day Avg. Volume: 12,854
• PEG Ratio: -0.01
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.26
• Enterprise Value/Market Cap: 0.26
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: -0.30
• Enterprise Value/Ebitda: -0.08
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: $27.00 ▼(-0.95%Downside)

Vroom, Inc.'s overall stock score is primarily influenced by its weak financial performance, characterized by declining revenues, negative profitability, and high financial leverage. Technical analysis provides some neutral signals, with short-term momentum but mid-term resistance. The valuation is unattractive due to the negative P/E ratio and lack of dividends, highlighting the ongoing financial challenges. Absent earnings call and corporate events data did not contribute to the score.

Vroom, Inc. Business Overview & Revenue Model

Company Description

Vroom, Inc. operates as an e-commerce used automotive retailer in the United States. It operates end-to-end ecommerce platform for buying, selling, transporting, reconditioning, pricing, financing, registering, and delivering vehicles. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. The company was incorporated in 2012 and is headquartered in New York, New York.

How the Company Makes Money

Vroom, Inc. generates revenue primarily through the sale of used vehicles. The company's revenue model is centered around purchasing pre-owned cars, reconditioning them to meet its quality standards, and reselling them to consumers at a profit. Vroom also earns money from ancillary services such as vehicle financing, extended warranties, and insurance products, which are offered to customers during the purchasing process. Significant partnerships with financial institutions help facilitate these services, while strategic logistics partnerships enable efficient nationwide delivery. Vroom's earnings are influenced by market demand for used vehicles, pricing strategies, and the efficiency of its reconditioning and sales processes.

Vroom, Inc. Financial Statement Overview

Summary

Vroom, Inc. faces a challenging financial position with declining revenues, negative profitability, and high leverage. The income statement reflects operational inefficiencies, while the balance sheet shows high financial risk due to negative equity and high liabilities. Cash flow improvements are minimal and insufficient to offset the broader financial concerns. Overall, the company needs significant strategic and operational adjustments to stabilize its financial health.

Income Statement

Vroom, Inc. has experienced significant revenue volatility with a declining trend from 2021 to 2023. The gross profit margin for 2023 was 18.1%, showing a decrease from the previous year. The company has consistently reported negative net income, leading to a negative net profit margin of -185% in 2023. The EBIT and EBITDA margins were both negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet shows a concerning financial position for Vroom, Inc. The debt-to-equity ratio is negative due to negative stockholders' equity, indicating financial instability. The equity ratio for 2023 was -2.1%, reflecting a significant reliance on debt financing. Overall, the company's balance sheet suggests a high risk due to excessive liabilities compared to its equity.

Cash Flow

Cash flow analysis reveals a challenging liquidity situation with negative operating and free cash flows. The operating cash flow to net income ratio for 2023 was mildly improved but still negative, suggesting inefficiencies in converting revenue into cash. However, Vroom, Inc. managed to slightly reduce its negative free cash flow in 2023 compared to 2022, indicating marginal improvements in cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.61M	893.20M	1.95B	3.18B	1.36B
Gross Profit	-29.09M	161.95M	244.79M	202.10M	71.55M
EBITDA	-43.11M	-274.20M	-392.61M	-334.99M	-188.41M
Net Income	-165.12M	-365.54M	-451.91M	-370.91M	-202.80M
Balance Sheet
Total Assets	1.07B	1.48B	1.62B	2.37B	1.72B
Cash, Cash Equivalents and Short-Term Investments	29.34M	140.07M	419.51M	1.13B	1.06B
Total Debt	752.34M	1.23B	985.76M	1.14B	347.38M
Total Liabilities	1.10B	1.35B	1.14B	1.45B	496.95M
Stockholders Equity	-30.95M	122.15M	475.24M	915.19M	1.23B
Cash Flow
Free Cash Flow	-100.52M	-536.31M	-133.30M	-597.10M	-366.58M
Operating Cash Flow	-97.04M	-533.68M	-109.06M	-568.69M	-355.25M
Investing Cash Flow	132.57M	173.15M	-164.21M	-104.29M	-11.33M
Financing Cash Flow	-165.99M	97.34M	-469.49M	797.71M	1.24B

Vroom, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$17.10B	10.62	-8.48%	2.94%	1.62%	-25.72%
FFAI	54 Neutral	$292.87M	―	-186.28%	―	8.52%	98.75%
PRTS	52 Neutral	$47.40M	―	-54.32%	―	-14.49%	-210.54%
NEGG	51 Neutral	$595.66M	―	-45.59%	―	―	―
GAN	51 Neutral	$91.53M	―	229.13%	―	7.02%	74.19%
RMBL	48 Neutral	$91.62M	―	-130.43%	―	-14.45%	78.09%
VRM	44 Neutral	$140.75M	―	-49.90%	―	-96.51%	77.24%

Vroom, Inc. Corporate Events

Vroom Warrants Begin Trading on OTCQX Market

On July 7, 2025, Vroom, Inc. announced that its warrants will trade on the OTCQX® Best Market under the symbol “VRMMW”, with trading expected to commence on the same day.

Vroom, Inc. Concludes Annual Stockholders Meeting

On June 12, 2025, Vroom, Inc. held its Annual Meeting of Stockholders, where 4,643,281 shares were represented, accounting for approximately 89.93% of the company’s outstanding common stock. During the meeting, eight directors were elected for terms ending in 2026, and the appointment of RSM US LLP as the independent registered public accounting firm for 2025 was ratified. Additionally, the compensation of the company’s named executive officers was approved on an advisory basis.

Vroom, Inc. Reports Q1 2025 Financial Results

On May 14, 2025, Vroom, Inc. announced its financial results for the first quarter ending March 31, 2025. The company reported a consolidated total available liquidity of $66.9 million, with a net loss of $6.5 million from continuing operations. Significant developments included the completion of a recapitalization of unsecured convertible senior notes, resulting in no long-term debt, and the extension of $400 million in warehouse agreements. The company also closed UACC’s 17th securitization transaction, issuing $324 million of fixed-rate asset-backed notes. These measures are part of Vroom’s strategy to strengthen its financial position and support long-term growth.

Vroom, Inc. Appoints Nikul Patel to Board

On April 24, 2025, Vroom, Inc. appointed Nikul Patel to its Board of Directors. Mr. Patel will participate in the company’s standard compensation program for non-employee directors, which includes cash and equity compensation. The appointment does not involve any other arrangements or family relationships with current directors or executive officers.